Question

Consider the needs of the market. Often businesses and individuals decide to specialize.

Conduct some brief research to identify an example of specialization in the market. List the example below, and in one or two sentences explain how your example represents specialization. Your final sentence should explain how both the seller and buyer gain from this specialization.

Answer 1

In An Inquiry into the Nature and Causes of the Wealth of Nations (1776), he describes the benefits of one type of specialization, division of labor, which is when cooperating individuals perform specialized tasks. Smith discusses this type of specialization in context of a pin factory.

Answer 2

Adam Smith was one of the first economists to explain the benefits one gets from specialization. He focused on describing the benefits of individuals specializing in labor. In An Inquiry into the Nature and Causes of the Wealth of Nations (1776), he describes the benefits of one type of specialization, division of labor, which is when cooperating individuals perform specialized tasks. Smith discusses this type of specialization in context of a pin factory.